1. Field of the Invention
The present invention relates generally to payment systems using general purpose smart devices, including parking systems.
2. Description of the Prior Art
Parking space in a city is a scarce resource that is allocated to those who will pay for it on a first-come, first served basis. Cities want to maximize their revenue from parking space while being fair to its customers. There are four major groups of parking technologies for collecting parking revenue.
First—The Traditional Single Space Parking Meter.
Advantages—It is near the vehicle and will take standard national coins, along with, in some more expensive versions, a download from a pre-paid debit card or a stored-value smart card. From the city's perspective, it is relatively inexpensive (approximately $250 per meter) to purchase and maintain, and the parking public is familiar with them.
Disadvantages—As more cities focus or raising the fees for parking, the single space meter is limited by the number of quarters the user can be expected to have available. If parking increases to two dollars per hour, the user will need to have 16 quarters to park for two hours. Single space meters require frequent collections as the cost of parking rises, and that expense is burdensome to the city. Single space meters are considered by many to be an ugly blight on the city's “streetscape”, and so there is an urban aesthetic drive to eliminate them in many cities. Single space meters are difficult to program for flexible rates (different rates for different times of day) or for rate changes.
Single space meters contain only small consumer style batteries, so their ability to support wireless communications or new forms of input, such as Near Field Communication (NFC), is very limited.
Second—The Multi-Space Parking Meter.
Advantages—The multi-space meter will allow one to pay with not only coins, but also, in some cases, paper money and credit/debit/pre-paid cards. They are usually in a communications network with the city or parking authority, so they can provide up to date information in real time regarding such issues as coin collection, electronic payments, and maintenance needs. They also allow for a cleaner “streetscape” because you only have one kiosk for approximately eight parking spaces. Battery requirements are often low because multi-space meters are in part operated on solar energy, depending on the local climate. Multi-space meters are designed with more capacity for IT intelligence; therefore they can more easily be programmed for flexible rates and dynamic rate change.
Disadvantages—Multi-space meters are expensive, averaging about $8,000-10,000 per kiosk—or $1,000-1,200 per parking space, as opposed to $250 per space with single space meters. Users are always initially unfamiliar with the meters and need to be trained in how to use them.
In inclement weather, or extreme heat, the process of going to the meter, getting a receipt, returning to the user's vehicle, opening your door, and placing the receipt on the dashboard becomes very inconvenient and possibly hazardous when the ground is icy or snowy.
There are hidden costs associated with multi-space meters. These are the charges for processing electronic payments and for delivering the payment information from the meter to the city before the payment process begins. The city has little or no control over those expenses.
There is an ongoing concern about the confidentiality of credit/debit card information in multi-space meters. Identity theft is a concern. Battery capacity, although great compared with single-space meters, still puts limits on wireless communication or NFC.
Third—Cell Phone Parking.
In these systems, the user parks and then calls a special telephone number which allows the user to identify the space (usually by a visible number assigned to the space), specify the amount of time to be purchased, and to update that amount of time, if necessary, later during the purchased time period.
Advantages—The user does not need to leave the vehicle in order to pay for parking. The user also does not need any kind of cash or credit card to make the payment. From the city's perspective, the cell phone payment system allows the city to change rates dynamically, as long as it's easy for the city to notify the cell phone parking vendor of any rate change. There is no cost of collection, unless the cell phone vendor charges a fee.
Disadvantages—It is difficult and cumbersome for the city's meter enforcement personnel to establish whether or not a vehicle is in violation of its allotted stay because the officer needs to call in to a central registry for every vehicle. There is nothing on, in, or around the vehicle to immediately establish its payment status. There have been “queuing” problems—when multiple calls to the cell phone vendor are being made simultaneously. User frustration with the increased cost of making multiple calls—and the time wasted in doing so—will create a significant frustration factor.
Fourth—In Vehicle Parking Meter Devices.
These are small devices that a driver may display on a dashboard or hang from a rear-view mirror that display an amount of time that the driver has paid out of a pre-paid account with the city.
Advantages—The user does not have to leave the car to pay for parking, nor does the user have any need to handle cash or expose credit/debit card information. The in-vehicle meter is relatively easy for the parking enforcement officer to read. There are no communication fees connected to the delivery of the service.
Disadvantages—The in-vehicle meter can be stolen fairly easily. It is often complex to reload value on the in-vehicle meter, since it's the device itself that has to be re-loaded. This may involve trips to city hall, police headquarters, or the local parking authority. All of the current companies offering this kind of service in the US are of either European or Israeli origin, and are primarily focused on developing business/technology models that will fit the somewhat different requirements of the European/Israeli customer base.
Therefore, what is needed is to have a way to pay for parking that has maximal convenience factors and can be used in multiple communities without regard to geography. It should also provide way to pay that has all of the advantages of electronic payment without fear of identity theft or other security issues.